Lufthansa Group Reports Q2 Revenue Growth Amid Losses

Lufthansa Group reported a 7% increase in second-quarter revenues, reaching €10 billion, but faced a significant decline in adjusted earnings before interest and taxes (EBIT), which fell 37% to €686 million due to strike disruptions, higher costs, and challenges in the Asia-Pacific market. The net profit for the quarter dropped to €469 million from €881 million the previous year, amid pressures from decreasing ticket prices and inflation-related expense increases. As a result, Lufthansa has initiated a turnaround program aimed at improving efficiency and reducing complexity, including plans to phase out several aircraft models. The company has also lowered its full-year profit forecast for the second time, now expecting between €1.4 billion and €1.8 billion. Looking ahead, Lufthansa anticipates lower yields and rising unit costs in the third quarter, which could further strain their financial outlook. Overall, the airline sector is experiencing a downturn, with Lufthansa's shares down about 25% over the past six months due to these ongoing challenges.